IMPACT OF IT INTEGRATION AND INTER- ORGANIZATIONAL TRUST ON RELATIONAL GOVERNANCE IN SUPPLY CHAIN

Abstract

Purpose Challenged by competitive pressures, and enabled by information technologies (IT), organizations are forming strategic partnerships that share, collaborate, and make collective decisions across the supply chain (SC). To study this phenomenon, researchers have focused on one or some of these salient factors: Information Technology Integration (IT). Inter- organizational Trust (TR), Relational Governance (RG) Methodology & Design In this study, we develop a research model that includes all these factors having a quantitative research method. The scope of research suggest that, the researcher is trying to measure the impact of Information Technology Integration (IT) and Inter-organizational Trust (TR) on Relational Governance (RG). Therefore, the statistical test i.e. Regression is implemented on a sample of 250 respondents and the data is gathered through questionnaires. Findings The Data collected from 250 respondents and the implemented tests provides strong support to our research model and suggest that, both (IT -Trust) & IT Integrations have significant impact on Relational Governance (RG) Limitations the limitations for the research include time, cost and availability of the SCM respondents, since it is a specialized job therefore, availability of the professionals is difficult and, therefore, the research is only limited to Karachi. Recommendations Implementing a proactive approach, strong level of integrations and developing trust are the recommendations which company could implement through systems like ERP etc.